IMEXHS LIMITED — Annual Report 2020

Feb 25, 2021

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26 February 2021

ASX ANNOUNCEMENT

IMEXHS reports Preliminary FY20 Financial Result

Highlights

• Sales revenue of $10.9m, up 41%; up 59% on constant currency basis

• In line with FY20 revenue guidance

• Recurring revenue of $8.5m, up 29%; up 45% on constant currency basis

• Annualised Recurring Revenue (ARR)[1] of $10.1m, up 19%; up 33% on a constant currency basis

• EBITDA loss of $1.3m; improvement of $3.3m (2019: EBITDA loss of $4.6m)

• Strong financial position with closing cash balance of $10.8m at 31 December 2020

• COVID-19 Update: Substantial recovery in imaging volumes during the December quarter but there remains some delay in decision-making by larger hospitals.

• All figures compare FY20 to FY19 unless otherwise indicated / Unaudited financial information

IMEXHS Limited (ASX: IME) (“IMEXHS” or “the Company”) today released its financial results for the 12 months ended 31 December 2020. IMEXHS is an innovative provider of cloud-based multi-tenant medical imaging software across 15 countries.

IMEXHS Co-Founder and CEO Dr German Arango said: “Despite the challenges created by the pandemic, FY20 was a successful year for IMEXHS as demand for our disruptive technology increased across our core markets and as we entered new regions around the world. We were pleased with our FY20 result, delivering sales revenue of $10.9m which was in line with previous guidance and 59% higher on a constant currency basis.

“We achieved a number of important milestones during 2020 including the launch of Aquila in the Cloud, our innovative product offering , the establishment of new partnerships with distributors and suppliers, and the certification of our product suite in the European Union and Brazil. We are in a strong financial position following the completion of an $8.3m placement in October which will fund future growth. In 2021, our key objective will be to implement our strategic plan as we continue to expand into new markets, develop other medical verticals and increase our investment in our AI capabilities.”

Financial Performance

IMEXHS reported a consolidated loss after tax of $3.6m; with an EBITDA loss of $1.3m (FY20: EBITDA loss of $4.6m) and underlying EBITDA[2] loss of $0.7m which represented an $3.8m improvement on

1 Annual Recurring Revenue (ARR) is the value of monthly recurring contract revenue multiplied by twelve.

2 Underlying EBITDA excludes the impact of FX and share based payments

IMEXHS Limited ABN 60 096 687 839 Imaging Experts and Healthcare Services Pty Ltd ABN 18 624 772 756 122 O’Riordan Street, Mascot NSW 2020 Tel: +61 2 9030 0040

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1. Excluding the impact of software capitalisation of $805k (which commenced on 1 January 2020), underlying EBITDA increased by $3.0m or 67%.

New contract wins and renewals contributed to sales revenue growth of 41% versus pcp and 59% on a constant currency basis. Recurring revenue increased by 29% versus pcp and ARR of $10.1m was up 19% and by 33% on a constant currency basis.

IMEXHS is in a strong financial position with closing cash of $10.8m and net assets of $15.5m at 31 December 2020.

Business Highlights

A key achievement in 2020 was the launch of Aquila in the Cloud in response to the challenging circumstances created by COVID-19 and the need for a standardised radiology solution that could be rapidly deployed for small to medium-sized operators. Since its launch in May, a total of 48 deals have been signed across eleven markets.[3] At 31 December, the highly scalable model had contributed an estimated $945,000 in ARR. Aquila in the Cloud’s pay-on-demand model has a significantly shorter sales cycle and its multi-tenancy capabilities mean that it can be implemented in under a fortnight.

IMEXHS continued to expand into new markets with the appointment of key personnel in Australia and the US and the opening of a new office in Miami. The Company also received ANVISA certification in Brazil and CE Certification in the European Union which permits sales of its HIRUKO product suite in these markets. In addition, IMEXHS has created new distribution channels via its inclusion on Ingrams Micro Cloud Marketplace and the establishment of a Partners Program to sell Aquila in the Cloud . The demand for IMEXHS’s customised solutions remained strong although there was a slowing in decision-making among larger operators as a result of the pandemic.

FY21 Outlook

The operating performance for the year to date is in line with the Company’s expectations following a significant recovery in imaging volumes and ongoing strong demand for Aquila in the Cloud .

In 2021, IMEXHS will prioritise the implementation of its strategic plan as it enters new markets and increases its investment in sales and marketing to drive digital sales through cloud marketplaces. At the same time, the Company will continue to expand its software development to create the world’s first pathology marketplace using Alula and will further enhance its AQUILA radiology platform. In addition, it will further build its AI capability and develop other -ologies or medical verticals.

Investor Conference Call

IMEXHS Co-Founder and CEO Dr German Arango and CFO Reena Minhas will host a conference call with the investment community including a Q&A session at 10am AEDT today (26 February 2021) . To listen to the conference call, please register at:

https://s1.c-conf.com/diamondpass/10012524-43u5zw.html

3 As at 24 February 2021

IMEXHS Limited ABN 60 096 687 839 Imaging Experts and Healthcare Services Pty Ltd ABN 18 624 772 756 122 O’Riordan Street, Mascot NSW 2020 Tel: +61 2 9030 0040

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Authorised for release by the board of IMEXHS Limited.

-ENDS-

For more information, please contact:

Media and Investor Relations

Françoise Dixon, Citadel-MAGNUS E: fdixon@citadelmagnus.com T: +61 412 292 977

Business Inquiries Reena Minhas E: enquiries@imexhs.com.au T: +61 (0)2-9030-0040

About IMEXHS

IMEXHS Limited [ASX: IME] is a leading imaging Software-as-a-Service (SaaS) and ancillary solutions provider with 250 customers and distributors in 15 countries. Founded in 2012, IMEXHS is known for its innovation in the imaging services market, offering flexible and scalable imaging solutions via its AQUILA branded suite of solutions for next generation Picture Archiving and Communications System (PACS) and integrated medical imaging systems (including a Radiology Information System (RIS), a Cardiology Information System (CIS) and an Anatomical Pathology Laboratory Information System (APLIS)). The AQUILA™ system is completely cloud-based, vendor neutral and zero footprint with no need for installed software. The IMEXHS products are designed to increase productivity and save money for end users, with a scalable platform that is configured for the future and enhances patient outcomes. For more information, visit www.imexhs.com

IMEXHS Limited ABN 60 096 687 839 Imaging Experts and Healthcare Services Pty Ltd ABN 18 624 772 756 122 O’Riordan Street, Mascot NSW 2020 Tel: +61 2 9030 0040

IMEXHS Limited Appendix 4E Preliminary final report

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1. Company details

Name of entity: IMEXHS Limited ABN: 60 096 687 839 Reporting period: For the year ended 31 December 2020 Previous period: For the year ended 31 December 2019

2. Results for announcement to the market

			$
Revenues from ordinary activities	up	41.4% to	10,934,036
Loss from ordinary activities after tax attributable to the owners of
IMEXHS Limited	down	39.8% to	(3,615,977)
Loss for the year attributable to the owners of IMEXHS Limited	down	39.8% to	(3,615,977)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the Group after providing for income tax amounted to $3,615,977 (31 December 2019: $6,002,288).

Refer to Market announcement, which precedes the Appendix 4E, for further commentary on the results for the year ended 31 December 2020.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 48.56	Previous period Cents 41.88

The net tangible assets per ordinary share reported in the comparative period has been calculated based on ordinary shares being on issue (23,513,176) that would have been in existence at the end of that reporting period had the consolidation of shares taken place as at 1 January 2019.

The net tangible assets per ordinary security presented above excludes right-of-use assets and lease liabilities.

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

IMEXHS Limited Appendix 4E Preliminary final report

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Previous period

There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

Not applicable.

8. Details of associates, joint venture entities and joint operations

The Group has a 30% share of a joint operation supplying radiology services to the Hospital Central Policía Nacional (National Police Hospital) in Bogotá Colombia. The joint operation contributed a profit after tax of $227,347 to the Group's loss for the year ended 31 December 2020.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statement are in the process of being audited and an unmodified opinion is expected to be issued.

11. Attachments

Details of attachments (if any):

The Preliminary Financial Report of IMEXHS Limited for the year ended 31 December 2020 is attached.

12. Signed

As authorised by the Board of Directors

Signed _________

Date: 26 February 2021

Doug Flynn Chairman

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IMEXHS Limited

ABN 60 096 687 839

Preliminary Financial Report - 31 December 2020

IMEXHS Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2020

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Note Revenue 1 Other income Interest revenue calculated using the effective interest method Expenses Hardware and licence expenses Research and development and support expenses Platform as a service expenses Clinical services expenses Administration and sales expenses 2 Share-based payments expenses Depreciation and amortisation expense Reversal of impairment/(impairment) of inventories Expected credit losses Net foreign exchange losses Other expenses Finance costs 2 Loss before income tax (expense)/benefit Income tax (expense)/benefit Loss after income tax (expense)/benefit for the year attributable to the owners of IMEXHS Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of IMEXHS Limited Basic earnings per share 15 Diluted earnings per share 15	Consolidated 2020 2019 $ $ 10,913,968 7,727,260 67,674 9,027 20,068 2,774 (1,433,397) (1,090,415) (646,665) (2,121,479) (572,396) (760,571) (4,536,638) (3,120,907) (4,441,049) (4,294,600) (598,457) (65,712) (1,024,386) (825,929) 86,617 (63,784) (54,386) (669,527) (31,315) (60,946) (72,990) (112,310) (1,204,736) (595,512)	Consolidated 2020 2019 $ $ 10,913,968 7,727,260 67,674 9,027 20,068 2,774 (1,433,397) (1,090,415) (646,665) (2,121,479) (572,396) (760,571) (4,536,638) (3,120,907) (4,441,049) (4,294,600) (598,457) (65,712) (1,024,386) (825,929) 86,617 (63,784) (54,386) (669,527) (31,315) (60,946) (72,990) (112,310) (1,204,736) (595,512)
	(3,528,088) (87,889)	(6,042,631) 40,343
	(3,615,977) (498,095)	(6,002,288) (5,840)
	(498,095)	(5,840)
	(4,114,072)	(6,008,128)
	Cents (14.62) (14.62)	Cents (30.85) (30.85)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

1

IMEXHS Limited Statement of financial position As at 31 December 2020

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 3 Inventories 4 Other 5 Total current assets Non-current assets Property, plant and equipment 6 Right-of-use assets 7 Intangibles 8 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 9 Contract liabilities Borrowings 10 Lease liabilities Income tax Employee benefits Total current liabilities Non-current liabilities Borrowings 11 Deferred tax Total non-current liabilities Total liabilities Net assets Equity Issued capital 12 Reserves 13 Accumulated losses Total equity	Consolidated 2020 2019 $ $ 10,796,484 7,149,683 4,754,213 3,403,028 389,668 107,354 302,187 250,619	Consolidated 2020 2019 $ $ 10,796,484 7,149,683 4,754,213 3,403,028 389,668 107,354 302,187 250,619
	16,242,552	10,910,684
	3,346,293 102,046 1,113,256	3,376,006 40,805 469,887
	4,561,595	3,886,698
	20,804,147	14,797,382
	2,382,531 53,548 868,777 101,469 6,611 1,045,997	1,425,203 63,936 1,232,589 40,574 41,469 850,081
	4,458,933	3,653,852
	727,951 81,277	826,894 -
	809,228	826,894
	5,268,161	4,480,746
	15,535,986	10,316,636
	28,461,991 2,588,050 (15,514,055)	19,757,466 2,457,248 (11,898,078)
	15,535,986	10,316,636

The above statement of financial position should be read in conjunction with the accompanying notes

2

IMEXHS Limited Statement of changes in equity For the year ended 31 December 2020

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Consolidated Balance at 1 January 2019 Loss after income tax benefit for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 12) Share-based payments Balance at 31 December 2019 Consolidated Balance at 1 January 2020 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 12) Share-based payments Share options issued Balance at 31 December 2020	Issued capital $ 10,553,259 - -	Reserves $ 1,193,326 - (5,840)	Accumulated losses $ (5,895,790) (6,002,288) -	Total equity $ 5,850,795 (6,002,288) (5,840)
	- 9,204,207 -	(5,840) - 1,269,762	(6,002,288) - -	(6,008,128) 9,204,207 1,269,762
	19,757,466	2,457,248	(11,898,078)	10,316,636
	Issued capital $ 19,757,466 - -	Reserves $ 2,457,248 - (498,095)	Accumulated losses $ (11,898,078) (3,615,977) -	Total equity $ 10,316,636 (3,615,977) (498,095)
	- 8,704,525 - -	(498,095) - 598,457 30,440	(3,615,977) - - -	(4,114,072) 8,704,525 598,457 30,440
	28,461,991	2,588,050	(15,514,055)	15,535,986

The above statement of changes in equity should be read in conjunction with the accompanying notes

3

IMEXHS Limited Statement of cash flows For the year ended 31 December 2020

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Note Cash flows from operating activities Loss before income tax (expense)/benefit for the year Adjustments for: Depreciation and amortisation Share-based payments Foreign exchange differences Expected credit losses (Reversal of impairment)/impairment in inventories Interest received Interest and other finance costs Change in operating assets and liabilities: Increase in trade and other receivables Decrease/(increase) in inventories Increase/(decrease) in trade and other payables Decrease in contract liabilities Increase in employee benefits Increase in other operating liabilities Interest received Interest paid Income taxes paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment 6 Payments for intangibles 8 Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares 12 Proceeds from issue of options Proceeds from borrowings Repayment of borrowings Share issue transaction costs Repayment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial year	Consolidated 2020 2019 $ $ (3,528,088) (6,042,631) 1,024,386 825,929 598,457 65,712 65,635 - 54,386 669,527 (86,617) 63,784 (20,068) (2,774) 1,204,736 491,419 (687,173) (3,929,034) (1,272,319) (442,411) (195,697) 640,172 952,246 (1,027,322) (10,388) (27,545) 195,916 430,929 - 387,358 (1,017,415) (3,967,853) 20,068 2,774 (428,225) (82,848) (41,470) (41,880) (1,467,042) (4,089,807) (1,264,915) (2,303,069) (921,435) (157,420) (2,186,350) (2,460,489) 9,280,000 10,000,000 30,440 4,050 939,825 2,383,134 (2,174,009) (338,670) (575,475) (675,794) (96,021) (93,085) 7,404,760 11,279,635 3,751,368 4,729,339 7,149,683 2,445,329 (104,567) (24,985) 10,796,484 7,149,683
	(687,173) (1,272,319) (195,697) 952,246 (10,388) 195,916 -
	(1,017,415) 20,068 (428,225) (41,470)
	(1,467,042)
	(1,264,915) (921,435)
	(2,186,350)
	9,280,000 30,440 939,825 (2,174,009) (575,475) (96,021)
	7,404,760
	3,751,368 7,149,683 (104,567)
	10,796,484

The above statement of cash flows should be read in conjunction with the accompanying notes

4

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 1. Revenue

Medical equipment and licences Leasing equipment and software and services Sale of inputs Service and maintenance of equipment and software Returns and discounts given Revenue Note 2. Expenses Loss before income tax includes the following specific expenses: Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Administration expenses Employee and Director benefits expense Professional and consultancy fees Taxes Office expenses Insurance Advertising and marketing Corporate expenses Maintenance Travel expenses Other	Consolidated 2020 2019 $ $ 2,078,376 862,009 8,414,224 6,670,570 228,709 305,960 192,659 210,863 - (322,142)	Consolidated 2020 2019 $ $ 2,078,376 862,009 8,414,224 6,670,570 228,709 305,960 192,659 210,863 - (322,142)
	10,913,968	7,727,260
	Consolidated 2020 2019 $ $ 1,199,655 586,377 5,081 9,135
	1,204,736	595,512
	2,290,579 545,853 200,465 262,382 103,031 74,962 734,949 719 31,944 196,165	1,726,610 403,467 179,173 283,645 96,560 180,220 606,901 4,090 223,940 589,994
	4,441,049	4,294,600

Note 2. Expenses

5

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 2. Expenses (continued)

Employee and Director benefits expense Included in administration expenses: Employee benefits expense excluding superannuation and share-based payments Defined contribution superannuation expense Included in research and development and support expenses: Employee benefits expense excluding superannuation and share-based payments Defined contribution superannuation expense Share-based payments expense	Consolidated 2020 2019 $ $ 2,153,494 1,609,485 137,085 117,125	Consolidated 2020 2019 $ $ 2,153,494 1,609,485 137,085 117,125
	2,290,579	1,726,610
	2,596,366 130,217	2,630,758 189,107
	2,726,583	2,819,865
	598,457	65,712
	5,615,619	4,612,187

Note 3. Current assets - trade and other receivables

Trade receivables Less: Allowance for expected credit losses Other receivables Indirect taxes receivable	Consolidated 2020 2019 $ $ 4,601,233 3,576,937 (866,708) (884,467)	Consolidated 2020 2019 $ $ 4,601,233 3,576,937 (866,708) (884,467)
	3,734,525	2,692,470
	6,651 1,013,037	9,718 700,840
	4,754,213	3,403,028

Allowance for expected credit losses

The Group has recognised a loss of $54,386 (2019: $669,527) in profit or loss in respect of the expected credit losses for the year ended 31 December 2020.

Note 4. Current assets - inventories

Merchandise not manufactured by the Group - at cost Materials and spare parts - at cost Less: Provision for impairment	Consolidated 2020 2019 $ $ 371,627 183,474 53,877 61,642 (35,836) (137,762)	Consolidated 2020 2019 $ $ 371,627 183,474 53,877 61,642 (35,836) (137,762)
	389,668	107,354

The cost of inventories recognised as an expense during the year ended 31 December 2020 was $1,433,397 (2019: $1,090,415).

The cost of inventories recognised as an expense includes $86,617 (2019: write downs of $63,784) in respect of reversal of write downs of inventory to net realisable value.

6

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 5. Current assets - other

Prepayments Other deposits Note 6. Non-current assets - property, plant and equipment Leasehold improvements - at cost Less: Accumulated depreciation Furniture and fittings - at cost Less: Accumulated depreciation Computer equipment - at cost Less: Accumulated depreciation Medical equipment - at cost Less: Accumulated depreciation	Consolidated 2020 2019 $ $ 27,354 16,800 274,833 233,819	Consolidated 2020 2019 $ $ 27,354 16,800 274,833 233,819
	302,187	250,619
	Consolidated 2020 2019 $ $ 32,340 - (359) -
	31,981	-
	23,117 (13,922)	26,286 (8,709)
	9,195	17,577
	1,435,049 (773,137)	1,640,412 (433,092)
	661,912	1,207,320
	3,259,322 (616,117)	2,519,140 (368,031)
	2,643,205	2,151,109
	3,346,293	3,376,006

Note 6. Non-current assets - property, plant and equipment

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 January 2019 Additions Disposals Exchange differences Depreciation expense Balance at 31 December 2019 Additions Disposals Exchange differences Depreciation expense Balance at 31 December 2020	Leasehold improvements $ - - - - -	Furniture and fittings $ 17,088 6,203 (364) (57) (5,293)	Computer equipment $ 793,274 781,941 (21,782) (2,631) (343,482)	Medical equipment $ 780,749 1,552,571 (8,979) (3,834) (169,398)	Total $ 1,591,111 2,340,715 (31,125) (6,522) (518,173)
	- 33,066 - (718) (367)	17,577 18,647 (19,091) (2,777) (5,161)	1,207,320 75,014 (92,233) (130,017) (398,172)	2,151,109 1,138,188 (61,319) (263,084) (321,689)	3,376,006 1,264,915 (172,643) (396,596) (725,389)
	31,981	9,195	661,912	2,643,205	3,346,293

7

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 7. Non-current assets - right-of-use assets

Land and buildings - right-of-use Less: Accumulated depreciation	Consolidated 2020 2019 $ $ 153,185 133,288 (51,139) (92,483)	Consolidated 2020 2019 $ $ 153,185 133,288 (51,139) (92,483)
	102,046	40,805

The Group leases land and buildings for its offices, warehouses and retail outlets under agreements of between 1 to 5 years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

The Group leases office equipment under agreements of less than 1 year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 January 2019 Modifications of lease terms Exchange differences Depreciation expense Balance at 31 December 2019 Additions Modifications of lease terms Exchange differences Depreciation expense Balance at 31 December 2020	Land and buildings $ 129,436 4,417 (193) (92,855)
	40,805 159,257 (2,341) (6,202) (89,473)
	102,046

Note 8. Non-current assets - intangibles

Internally developed software - at cost Copyright - at cost Less: Accumulated amortisation Licenses - at cost Less: Accumulated amortisation	Consolidated 2020 2019 $ $ 805,629 -	Consolidated 2020 2019 $ $ 805,629 -
	24,275 (18,198)	27,768 (17,355)
	6,077	10,413
	892,058 (590,508)	959,465 (499,991)
	301,550	459,474
	1,113,256	469,887

8

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 8. Non-current assets - intangibles (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 January 2019 Additions Exchange differences Amortisation expense Balance at 31 December 2019 Additions Disposals Exchange differences Amortisation expense Balance at 31 December 2020	Internally developed software $ - - - -	Copyright $ 13,535 - 368 (3,490)	Licences $ 513,833 159,201 (2,149) (211,411)	Total $ 527,368 159,201 (1,781) (214,901)
	- 805,629 - - -	10,413 - - (1,228) (3,108)	459,474 115,806 (12,177) (55,137) (206,416)	469,887 921,435 (12,177) (56,365) (209,524)
	805,629	6,077	301,550	1,113,256

Note 9. Current liabilities - trade and other payables

Trade payables Withholding tax payable Other payables	Consolidated 2020 2019 $ $ 1,457,945 870,151 617,161 442,511 307,425 112,541	Consolidated 2020 2019 $ $ 1,457,945 870,151 617,161 442,511 307,425 112,541
	2,382,531	1,425,203

Note 10. Current liabilities - borrowings

Credit cards Unsecured Revolving Credit Loans Unsecured Fixed term loans Unsecured other loans PaaS equipment financing loan*	Consolidated 2020 2019 $ $ 2,759 6,866 40,833 91,652 808,588 612,501 - 4,388 16,597 517,182	Consolidated 2020 2019 $ $ 2,759 6,866 40,833 91,652 808,588 612,501 - 4,388 16,597 517,182
	868,777	1,232,589

• Relates to various loans made to the company for PaaS contracts where the equipment is repaid at a 200% rate of return on their loan which is paid in monthly instalments over the initial term of the PaaS contract.

9

IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 11. Non-current liabilities - borrowings

Unsecured revolving credit loans Unsecured fixed term loans Secured loans from related parties Cost of borrowing*	Consolidated 2020 2019 $ $ 40,056 13,276 687,895 585,047 - 1,000,000 - (771,429)	Consolidated 2020 2019 $ $ 40,056 13,276 687,895 585,047 - 1,000,000 - (771,429)
	727,951	826,894

• The cost of borrowing relates to the net amortised value of the cost of options issued on the loan to Domatorisaro Pty Ltd, a related party of Dr Doug Lingard. The cost of the options is amortised over the length of the loan. This loan comprised two possible tranches of $1,000,000 each at an annual interest rate of 12.5% on each tranche and 4% on the facility. The loan was repaid during the financial year ended 31 December 2020.

Note 12. Equity - issued capital

2020 Shares Ordinary shares - fully paid 29,699,842 Movements in ordinary share capital Details Date Balance 1 January 2019 Issue of shares pursuant to placement 24 October 2019 Share issue transaction costs, net of tax Issue of lead advisor options 24 October 2019 Balance 31 December 2019 Issue of shares 26 May 2020 Conversion of class A performance shares 23 July 2020 Issue of shares 30 October 2020 Issue of shares 30 October 2020 Consolidation of shares 50 to 1 6 November 2020 Share issue transaction costs, net of tax Balance 31 December 2020	2020 Shares 29,699,842		Consolidated 2019 2020 Shares $ 1,175,657,186 28,461,991	2019 $ 19,757,466
			Shares 925,657,186 250,000,000 - -	$ 10,553,259 10,000,000 (675,793) (120,000)
				19,757,466 500,000 - 8,280,000 500,000 - (575,475)
				28,461,991

Ordinary shares

Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should the Company be wound up, in proportions that consider both the number of shares held and the extent to which those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Class A performance shares

The Company had 750,000 unquoted class A performance shares. Class A performance shares are subject to performance hurdles measured against audited revenue of the GRT App equal to or exceeding $8,000,000 in any financial year. These class A performance shares were converted into 6 ordinary shares on 23 July 2020.

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IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 12. Equity - issued capital (continued)

Share buy-back

There is no current on-market share buy-back.

Note 13. Equity - reserves

Foreign currency reserve Share-based payments reserve	Consolidated 2020 2019 $ $ (519,327) (21,232) 3,107,377 2,478,480	Consolidated 2020 2019 $ $ (519,327) (21,232) 3,107,377 2,478,480
	2,588,050	2,457,248

Foreign currency reserve

The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services.

Note 14. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Note 15. Earnings per share

Loss after income tax attributable to the owners of IMEXHS Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated 2020 2019 $ $ (3,615,977) (6,002,288)	Consolidated 2020 2019 $ $ (3,615,977) (6,002,288)
	Number 24,730,188	Number 19,458,381
	24,730,188	19,458,381
	Cents (14.62) (14.62)	Cents (30.85) (30.85)

The weighted average number of ordinary shares in the comparative period are calculated based on the number of shares that would have been in existence had the capital restructure occurred on 1 January 2019.

Share options on issue have been excluded from the weighted average number of ordinary shares used in calculating diluted loss per share as they are considered anti-dilutive.

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IMEXHS Limited Notes to the financial statements 31 December 2020

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Note 16. Events after the reporting period

The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

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